Owner of floating Docklands nightclub Atet sues Melbourne Council after licence scrapped

The owner of Atet nightclub is suing the City of Melbourne for damages and says he’s been left “shocked” at the council’s unprofessional behaviour.

The owner of Atet – the controversial floating club in Docklands – is suing the City of Melbourne over the alleged wrongful termination of its licence and is seeking damages to recoup millions of dollars in losses.

The statement of claim, seen by the Herald Sun, states the business lost $7m from not being able to trade after its licence was cancelled by the council in June.

This comes on top of the nearly $2m in “start-up expenses” to establish Atet, such as purchasing a barge and refurbishing it.

The lawsuit alleges the City of Melbourne engaged in “unconscionable conduct” because the council used “undue influence” and “unfair tactics” to coerce Atet into accepting unfair trading conditions which went beyond what was in the planning permit.

Atet owner Jake Hughes says the council failed to act in good faith. Picture: Owen Leonard

The council is also alleged to have engaged in “misleading and deceptive conduct”.

Atet owner Jake Hughes said the council had been unwilling to negotiate and had left him with no option but to seek justice in court.

“We refuse to accept that the council can suddenly shut down a compliant business,” he said.

“We have done everything the council has ever asked of us and have been repeatedly blindsided by their actions not matching their words.

“We are shocked at how unprofessional some of their behaviour has been.”

Development Victoria is also listed in the lawsuit due to issues around the location Atet was forced to trade at when the venue opened.

The original proposed location Atet had planned to operate from was further away from apartments but it was not available due to the unknown condition of the area and it did not have proper moorings to secure the barge.

Atet was damaged by fire in January 2023. Picture: Supplied

The lawsuit also details how Mr Hughes made repeated representations to the council to find a workable solution to allow the business to continue operating while reducing impacts for nearby residents.

A noise limiter was installed and acoustic engineer engaged to demonstrate the business was compliant with conditions imposed by the council.

An offer was made to enclose Atet through a motorised glazing system to reduce noise.

Mr Hughes also offered to move the venue to a different location, further away from apartments, to reduce impacts for residents but the council did not take up the offer and terminated Atet’s licence in June.

Mr Hughes said the council failed to act in good faith.

“The City of Melbourne claim to be a champion of the live music scene but they have rejected every attempt to save our business, which was cherished by the music community,” he said.

“We are on the brink of losing everything but we will continue to fight to save Atet and stop this happening to other businesses.”

Lord Mayor Sally Capp, second from left, spruiked Atet as an attraction that would help attract thousands of people to Docklands.

Atet opened in October 2022, and in the lead-up to the launch, Lord Mayor Sally Capp spruiked Atet as an addition to Docklands and an attraction that would help attract thousands of people to the area.

Ms Capp also used Atet as the venue in October 2022, for the City of Melbourne’s media launch for its New Year’s Eve celebrations.

The council still lists the venue on its What’s On website as “a floating, open-air oasis designed for the ultimate event”.

Atet attracted a raft of noise complaints from nearby residents living in apartments in Docklands soon after opening.

The City of Melbourne was approached for comment yesterday but declined.